According to the latest stress test, the Bulgarian banking system is resistant to external shocks.
The Bulgarian National Bank (BNB) has published the results from the asset quality review (AQR) and stress test (ST) of the Bulgarian banks. The AQR and ST were mandated to the BNB by law and were carried out by the BNB in collaboration with an independent external consultant.
According to the Central Bank, the banking system is generally well-capitalised and resistant to potential shocks. The capital adequacy of each bank after potential adjustments from the asset quality review remains above the minimum regulatory requirements and the results do not necessitate any public support to the banks with state budget funds, BNB added.
The stress test results of UniCredit Bulbank show that in the main scenario until 2018, which is believed to represent the most probable macroeconomic and financial trends, CET1 of UniCredit Bulbank is 31.6% with a required level of 4.5% and an average for the banking system in Bulgaria of 22.2%. In the simulations of the unfavourable scenario, the CET1 ratio of UniCredit Bulbank is 18.3%, considerably above the minimum, with 14.4% for the banking system.
Contact:
Borislav Hitov
Head of Global Securities Services Bulgaria
+359 2 923 2670
borislav.hitov@unicreditgroup.bg